Wells Fargo Removes Credit Card Rewards Program
Wells Fargo has ended both of its credit and debit card rewards programs, because of new regulatory changes that will affect debit card fees.
The bank previously offered 1 point for every $4 spent on a consumer's debit card, if they had a credit card enrolled in the program as well, The Street reported.
A change in rewards policy came about in the wake of the Durbin Amendment, a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The clause prevents banks from charging exorbitant amounts of money to merchants for debit transactions, according to the news source. The cap is planned to be 12 cents per debit transaction, a 70 percent drop from what it currently is.
Congress is slated to make a ruling on the Durbin Amendment in April. It is planned to go into effect in July, the news source said. Wells Fargo put the new policies into effect on March 27, for all Wachovia branches. All Wells Fargo branches will end the program on April 15.